In Search For Profits

Thursday, September 18, 2003


Brian Hicks from the Volume Spike Alert service mentioned this $1.30 defense stock whose product performed so well in the battlefield that General Tommy Franks personally thanked the company after returning from the war. Today the stock volume went up from its 3 month average of 650,000 to 3 million shares.

Mr. Hicks says something big is brewing and it looks like it could hit US$2.00 a share.

I think that the stock he is talking about is Arotech Corp (NasdaqNM: ARTX) and it is up 13.56% today.







Wednesday, September 17, 2003


Hats off to William Colburn from the Fear and Greed report! His ALTERNATE ENERGY(OTC BB: ARGY.OB) really did well today.

This company develops environmentally friendly fuels and power solutions (alternative energy) and owns patented fuel cell hydrogen production methods. The company announced successful tests of its highly pure hydrogen production process.

Colburn had been observing the volume spikes and recommended ARGY.OB at $1.43 around 2PM on 9/16. Today it jumped 36.63% from the previous close to reach 2.35!

As he said, today is beautiful!







In November 2003, cellular service providers must allow customers to keep their phone number when they change carriers.

The ChangeWave newsletter is telling us that there is a company that sells a number portability and number inventory management software and some other applications to most of these cellular carriers.

As they say, the stock went up recently and has a trailing P/E ratio of 16, sells for 8 times cash flow and will be growing earnings at 30-40% in the next 18-24 months.

I think the name of the company is Evolving Systems (NasdaqSC: EVOL). This Denver company has the highest share price appreciation over the last 52 weeks, as per Motley Fool's Bill Mann.





Sunday, September 14, 2003


Some of Taipan Group's predictions II

Technological breakthroughs from the war on terror: Some companies will get a lot of the extra $400 billion approved for Homeland Security. Companies that market biometrics checks, retina scanners, face recognition, shipping-container scanners, stun guns, battle-ready laptops and so on.

The money invested in these techologies can spill over other areas and create advances in medicine, consumer products. The same innovations in the military field can benefit the consumer market. Remember the Internet was originally an idea from the Pentagon.

[My own bet on this scenario is on TASR (Taser). They sell stun guns that cause an effect similar to cramps in all the muscles of the body. I think that, eventually, this will be adopted by all airport security and police departments. The other stock would be XYBR, the company that makes a wearable computer for soldiers.]







Some of Taipan Group's highly speculative predictions - part I:

Oil Apocalypse: They say America will go to war with Saudi Arabia. Saudi citizens have been rioting since 2002, burning American flags in the streets, howling anti-Western slogans and calling for the blood of their own royal family and the collapse of their government. Saudi markets cannot keep Bin Laden T-shirts in stock.

Arabia is the number one importer of weapons. The Saudi national debt is 150% larger than its GDP and the government budget deficit has been going on for the last 17 years. Saudi unemployment reached 40%. Saudi streets are full of potholes and electricity regularly shuts off.

King Fahd, our ally in the royal family is dying in a hospital. His brother who will rule in his place is not pro-American. Prince Sultan, the Saudi Minister of Defense, has publicly attacked Saudi Arabia's pro-American stance. The rest of the Saudi Royals squandered their wealth with prostitutes, drugs, alcohol, a violent affront to ultra-conservative Muslims.

Saudi and US interests cannot be separated in time and when the crisis happens, the price of oil and the price of oil stocks that are not involved in the Middle East will skyrocket.

[Now this is my own opinion: SYNM (SYNTROLEUM CORP) could benefit from a scenario like this - they make synthetic liquid fuels from natural gas. PTR (Petrochina) could also benefit since all of its reserves are in China.]





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